Create a project contract to invoice for units of delivery [AX 2012]

Use these procedures to create a project and project contract, so that you can invoice a customer when you have completed a unit of delivery that is defined in the contract. The timing of the invoices is negotiated with the customer.

Example

Your organization offers to provide training for a customer’s products. The customer agrees to use your services for a total of five training sessions across the United States, at a cost of $10,000 per training session. Your organization bills the customer after each training session. In this example, the training session is the unit of delivery.

Use these procedures to set up a contract, an associated project, and the billing rules. The billing rules are used to calculate the amount that is included in invoices to the customer when the units of work that are specified in the project contract are delivered.

After you have created the contract and the project, you can set up the details of the project. For example, you can define the activities of the project and assign workers to the project.

In the Project contracts form, on the Project contract tab, in the Set up group, click Billing rule.

In the Billing rules form, click New.

In the Line type field, select Unit of delivery.

On the Billing rule line details FastTab, in the Unit field, select a unit of measure that is related to the project contract.

In the Quantity field, enter the total number of units to deliver in the project contract.

In the Unit sales price field, enter the price per unit. The total amount for the billing rule is automatically calculated.

In the Project field, select the project or task that uses this billing rule.

In the Category field, select a project category to assign to the fee transaction.

You can enter a percentage to calculate the amount that the customer withholds from payments on an invoice. On the Payment retention terms FastTab, select the funding source, and then, in the Retention percentage field, enter the retention percentage.

Repeat this procedure to create additional billing rules for the project contract.